Question
Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invested $130,000
Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.
April | 1 | Tanner invested $130,000 cash along with office equipment valued at $31,200 in the company. | ||
2 | The company prepaid $7,200 cash for twelve months rent for office space. (Hint: Debit Prepaid Rent for $7,200.) | |||
3 | The company made credit purchases for $15,600 in office equipment and $3,120 in office supplies. Payment is due within 10 days. | |||
6 | The company completed services for a client and immediately received $2,000 cash. | |||
9 | The company completed a $10,400 project for a client, who must pay within 30 days. | |||
13 | The company paid $18,720 cash to settle the account payable created on April 3. | |||
19 | The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) | |||
22 | The company received $8,320 cash as partial payment for the work completed on April 9. | |||
25 | The company completed work for another client for $2,640 on credit. | |||
28 | Tanner withdrew $6,200 cash from the company for personal use. | |||
29 | The company purchased $1,040 of additional office supplies on credit. | |||
30 | The company paid $700 cash for this months utility bill. |
Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30.
Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invested $130,000 cash along with office equipment valued at $31, 200 in the company. 2 The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) 3 The company made credit purchases for $15,600 in office equipment and $3,120 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $2,000 cash. 9 The company completed a $10,400 project for a client, who must pay within 30 days. 13 The company paid $18,720 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) 22 The company received $8,320 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 on credit. 28 Tanner withdrew $6,200 cash from the company for personal use. 29 The company purchased $1,040 of additional office supplies on credit. 30 The company paid $700 cash for this month's utility bill. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30Step by Step Solution
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